ACCT 2332 Hello I need help with this question Down Under Products, Ltd., of Aus

Question

ACCT 2332

Hello I need help with this question

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows April May June Sales in Units 64,000 80,000 104,000 87,000 Lu The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 15% of the following month's sales The inventory at the end of March was 9,600 units Required Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total Answer is not complete. Down Under Products, Ltd Production Budget April May June Quarter 248,000 80,000 104,000 184,000 80,000 104,000 104,000 87,000 191,000 104,000 87,000 Budgeted units sales Add: Desired units of ending finished goods 64,000 80,000 144,000 invento Total needs Less: Units of beginning finished goods inventory96,000 Required production in units 248,000 48,000 248,000

Explanation / Answer

Down Under Products Ltd.

Production Budget

For the quarter ended June 30

April May June Quarter Budgeted Sales in Units 64,000 80,000 104,000 248,000 Desired Ending Inventory 12,000 15,600 13,050 13,050 Total Inventory Needs 76,000 95,600 117,050 261,050 Less: Beginning Inventory 9,600 12,000 15,600 9,600 Budgeted Production in Units 66,400 83,600 101,450 251,450

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